Performance Management Systems

Performance Management

Performance management (PM) systems are created to evaluate and develop the performance of an employee within an organization, ensuring their performance is aligned with the strategic goals of the organization (Aguinis, 2013). PM systems should meet certain criteria to ensure that the system is helping the organization by motivating the employees and providing feedback to increase performance. If implementation and execution is not done properly the PM system can do more harm, than good for the organization.

Performance Management System

PM system should be chosen based on the culture and location of the organization (Aguinis, 2013). There are multinational organizations with PM systems in place that are consistent throughout the organization, however, they very slightly with the ways in which the individuals are evaluated aligning it with both the culture within the organization and the culture of the country they are in. Centura is a hospital system located within Colorado and Kansas. They have created a PM system that is consistent throughout all of their hospitals, departments, and corporate offices. While there is no such thing as a perfect operating PM system, this organization has created one that works well for them and their employees.

Fourteen Performance Management Characteristics

Aguinis (2013) describes fourteen PM system characteristics and how they should ideally work. These characteristics are: strategic congruence, thoroughness, practicality, meaningfulness, specificity, identification of effective and ineffective performance, reliability, validity, acceptability, inclusiveness, openness, correctability, standardization, and ethicality. Each of these characteristics has an ideal expectatio...

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...umerical standards that cannot be corrected until the next evaluation year, and the values of the organization are open for interpretation and due to the leader, are usually not correctable. Last of all, ethicality is lost as the leader uses their personal view of the employee for evaluation regardless of work ethic, causing such individuals to lose a promotion even though it was deserved.

Conclusion

The current PM system at Centura is a good start. There are issues with the system due to the bias of the leadership. This is a hard issue to resolve, however, if the system was updated to reduce inconsistencies with interpreting the values of the Centura organization the issue could be lessened. Which would decrease the bias of the leaders and increase the moral of the employees and their performances. Increasing employee retention and overall associate satisfaction.